DCX may enter the banking business

DaimlerChrysler may venture into the U.S. banking business, according to a recent Reuters report. The move will mean lower borrowing costs for the automaker, which has a similar setup in Germany. As long as the entity is completely independent, the rule is that the automaker can get an industrial bank license from the state of Utah to operate its bank nation wide, possibly giving the bank a better credit rating than DCX's BBB rating and making it easier to make some money off its financing division. The United States makes up 70 percent of overall financial services business volumne, making it a prime area to reap some better profits. DCX hopes to gain approval in early 2006.
Thanks to Corey for the tip.